- Crypto markets rose as traders focused on institutional crypto news before the Federal Reserve’s next meeting.
- Bitcoin increased 3.1% in 24 hours, nearing its all-time high, with major tokens following suit.
- Traditional stocks rebounded and Gold prices dropped as recent geopolitical tensions eased.
- Positive momentum was supported by crypto-related developments from JPMorgan and asset manager Purpose.
- Analysts stated that Bitcoin remains the main market driver, while attention turns to Federal Reserve comments this week.
Cryptocurrency prices climbed on Monday as market participants shifted their attention from geopolitical risks to upcoming crypto-focused institutional developments, according to recent trading data. The move comes ahead of the U.S. Federal Reserve’s Federal Open Market Committee (FOMC) meeting scheduled this week.
Bitcoin gained 3.1% over the last 24 hours, trading at approximately $108,600, just below its record high. The broader CoinDesk 20, an index of the top 20 cryptocurrencies by market cap (excluding stablecoins and memecoins), rose by 4.3% during the same period, led by 6-7% gains in tokens like ChainLink.
Markets outside of cryptocurrency also showed signs of stability. The S&P 500 and Nasdaq stock indexes increased by 0.9% and 1.4%, while the price of gold, often viewed as a “safe haven,” fell by 1.5%. Stocks tied to the crypto sector mirrored these gains; Coinbase rose 7.7% and Circle climbed 13%, while mining firms Bitdeer and Hut 8 notched 6.9% and 5.6% increases, respectively.
Fresh developments gave added support to the rally. JPMorgan filed a trademark for a digital asset platform covering trading, exchange, payments, and issuance. Asset manager Purpose announced plans to launch a spot XRP exchange-traded fund (ETF) in Canada, as interest in alternative crypto funds grows.
The trend has led some to speculate about the start of “altcoin season,” when smaller cryptocurrencies outperform bitcoin. However, Nansen analyst Nicolai Søndergaard stated that, “BTC has mostly served as a trigger for altcoins… The focus is still very much on BTC.” Analysts from Bitfinex noted that last week’s drop in market sentiment and high liquidation events have historically signaled short-term market bottoms, saying, “If BTC can hold the $102,000-$103,000 zone, it may suggest that selling pressure is being absorbed and that the market could be primed for recovery.”
Investors are now watching the Federal Reserve and Chair Jerome Powell for comments on interest rates and economic policy. Market consensus, tracked by the CME FedWatch tool, predicts no change in rates at this meeting or the next, but trading is expected to react to the tone of Powell’s remarks.
Swissblock, a digital asset analytics firm, wrote, “Powell’s tone, not the rate decision, will drive volatility… Expect whiplash trading across commodities, yields and risk assets.”
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